Corporate Update

Eskay K ‘n’ IT plans foray into China

Eskay K ‘n’ IT (India) (EKIL), the flagship company of Navin Kumar Tayal Enterprise, plans to set up a marketing and distribution office and sales depot in Guangzhou city of China. Says Mr Navin Kumar Tayal, chairman “Our foray into China will work two ways; cater to the growing Chinese demand for high end yarn, fabric, specialty fabric and fashion garments and also sourcing their basic product either for re-export to third country or into India and can be used for further finished products. Demand for higher quality finer count is growing rapidly by Chinese customers from India as Indian players are enjoying richer cotton quality having long staple length, fine micronnaire and almost zero trashy cotton spun on world class state-of-the-art technology.

The company proposes to open office at Guangzhou as the available data indicates that 50% of the Indian textile products exported to China is to “Guangdong” province specifically for Guangzhou city. Guangzhou is the gate to South China, neighbouring to Hong Kong and Macau. Guangzhou is the biggest trading center of textile products in China. Guangzhou serves as the window to the global fashion, having latest technology combined with excellent infrastructure. He said, “China is a big name in International textile market, but they are very strong only in manufacturing basic products and that is where India comes into the picture, our company is well known for high-end fabrics manufacturing and having state-of-the-art production facility and having value added product at domestic and international level. The Chinese Government is keen on exploring joint venture options with Indian players. Instead of shutting down units, Beijing is keen to tie-up with Indian companies for value added products, said Mr Tayal. “Being closer to Hong Kong, Eskay K ‘n’ IT will have geographical advantage and our global business can be expanded,” Tayal said. EKIL’s wide range of products can be promoted in China through ‘Stock and Sales’ and direct import sales in the name of customers. “We are expecting business of around USD 10 million during current financial year after opening the China office,” said Mr Tayal.

Through his vast experience, Mr Tayal has positioned Eskay K ’n’ IT as a backward integrated, high-end fabric manufacturer in the national and international market. With its ability to provide entire value chain in textiles from spinning of cotton yarn to finished garments under one roof, the company aims to become one of world’s foremost players providing high quality, value-or-money textile products.